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Ten Ways to Increase Your Chances of Raising Venture Capital

Published: 1/22/2007 2:31:14 PM

(Previous post - #7 in a series)

#8 - Be honest with investors

I'm not accusing anyone of willfully trying to deceive investors, but you need to be candid when talking with them about the current and future state of the company.  For example, if you're close to finalizing a deal but are unsure of the timing, then be honest when asked.  It is better to say "I'm not sure" than having to sheepishly explain later why there's still no signed agreement when the paperwork was supposedly being faxed a week ago.

Remember, investors have a pretty good memory, especially if you're telling them something important or material about your company.  If they like what they hear, smart money investors will confirm it in due diligence.  Why go through the process only to stall out in due diligence because of some exaggeration or representation that didn't match reality?  Investors want to deal with people they can trust, so being that kind of person will do the most to increase your chances of getting venture capital.

Don Jones

www.VentureDeal.com


 

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Don Jones
CEO, VentureDeal

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